US EQUITY OPEN: Risk off trade as Israel strikes the South Pars gas field in Iran

US EQUITY OPEN: Stocks have opened in the red as oil prices surge in response to Israel attacking the South Pars gas field in Iran, the largest natural gas field in the world. The attack was reportedly approved by the US, and it has raised concerns of the Iranian response onto energy infrastructure in the area with the IRGC issuing evacuation warnings for several energy facilities across the gulf. The vast majority of sectors have opened lower, apart from Energy which is benefitting from higher crude prices while Industrials see marginal gains. The move higher in crude is seeing yields rise across the curve, particularly in the front end with the curve bear flattening. The risk off trade is supporting the Dollar while antipodes lag. Attention ahead lies on the FOMC rate decision, which is expected to keep rates on hold with participants eyeing the vote split and dot plots, while attention will also be on how the Fed expects the war to impact the economy. The BoC rate decision is also due shortly. 

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